Norteño Pipeline Company

First Revised Volume No. 1

Effective Date: 04/01/1996, Docket: CP96- 81-007, Status: Effective

Original Sheet No. 159 Original Sheet No. 159 : Superseded

RATE SCHEDULE RCS

FIRM TRANSPORTATION SERVICE - RELEASED CAPACITY

(continued)

6. POSTING OF RELEASED CAPACITY:

Any Capacity Release Notice received by Norte¤o

pursuant to Sections 4 or 5 of this Rate Schedule shall

be posted by Norte¤o on its Electronic Bulletin Board

in accordance with the following criteria:

(a) A pre-arranged release at Norte¤o's maximum tariff

rates applicable to the Transportation Rate

Schedule FT-S or FT-DN under which the capacity is

being released shall not be posted for bidding;

however it shall be posted for information

purposes within 48 hours after the effective date

of the release.

(b) A pre-arranged release for a period of less than

31 days shall not be posted for bidding; however

it shall be posted for information purposes within

48 hours after the effective date of the release.

exceeding six (6) months, the notice shall be

posted at least forty eight (48) hours prior to

the effective date of the release for a period of

twenty-four (24) hours.

(d) For capacity to be released for a term longer than

six (6) months, the notice shall be posted at

least twenty-eight (28) days prior to the

effective date of the release for a period of

fourteen (14) days.

(e) With respect to any notice of a pre-arranged

release which has been posted for bidding, if the

posting results in a better offer then the pre-

arranged bidder shall have two (2) business days

after notification of such better offer in which

to match such better offer. A pre-arranged bidder

matching the better offer shall be awarded the

Released Capacity.